UPDATE 5-US-China summit must deliver real results – Clinton

* Clinton urges yuan appreciation, market opening

* U.S. rejects China threat and containment theories

* China urged to uphold UN sanctions on North Korea

* Geithner says yuan making substantial gains
(Adds White House human rights comment, paragraphs 23-24)

By Paul Eckert

WASHINGTON, Jan 14 (BestGrowthStock) – U.S.-China relations are at
a critical juncture and a summit between their leaders next
week must produce “real action, on real issues” such as trade,
climate change and North Korean nuclear proliferation, U.S.
Secretary of State Hillary Clinton said on Friday.

“It is up to both nations to translate the high-level
pledges of summits and state visits into action. Real action,
on real issues,” she said in a major China policy address.

Clinton urged China to let its currency appreciate faster,
end discrimination against foreign companies and further open
its markets to U.S. manufactured goods and farm products.

Some U.S. analysts see Chinese President Hu Jintao’s trip
as the most important state visit in 30 years. The leaders of
the world’s two biggest economies are trying to put behind them
a stormy 2010 and forge more stable ties for the coming years.

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TAKE-A-LOOK [ID:nL3E7CA05U]

PDF on Hu-Obama summit http://link.reuters.com/buz46r

Graphics http://r.reuters.com/dur95r

Reuters Insider http://link.reuters.com/bup36r

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Washington and Beijing sparred last year over longstanding
issues such as U.S. arms sales to Taiwan, the status of Tibet’s
Dalai Lama and human rights. They also quarreled over newer
problems including deadly North Korean attacks on South Korea,
South China Sea navigation rights, and rare earth minerals.

Clinton’s remarks were part of a week of China policy
speeches by U.S. Cabinet officials — and a trip to Beijing by
Defense Secretary Robert Gates — designed to set the tone for
President Barack Obama’s Jan. 19 Washington summit with Hu.

U.S. DEMANDS ON PARADE

Each Obama administration official stressed the value of
the China relationship to the United States, but also drove
home demands for currency appreciation and other U.S. economic
goals as well as help with global trouble spots.

Treasury Secretary Timothy Geithner on Friday noted that
the yuan had gained in real, inflation-adjusted terms.

“Because Chinese inflation is accelerating more rapidly
than U.S. inflation, the right measure of the pace of
appreciation is now more than 10 percent a year, and that is a
very substantial, material change,” he said. [ID:nN14181970]

On global problems, the United States wants China to “step
up to more of its obligations,” Clinton said.

“Global recession, nuclear proliferation, terrorism, piracy
on the high seas — these are threats that affect us all,” she
said. “China should join us in confronting them.”

China and the United States, the world’s two largest
emitters of greenhouse gases, had worked to forge the Cancun
Agreement on climate change but now must implement the pact on
transparency, funding, and clean energy technology, she said.

China analyst Dean Cheng of the Heritage Foundation in
Washington said appeals to mutual interest are a tough sell to
China, which is “not in the habit of granting favors.”

“The United States can make all the demands it wishes, but
China will satisfy those demands only if the Chinese action is
consistent with China’s interest, or the United States somehow
can demonstrate that it can be in China’s interest,” he said.

Hu, who hands power to a successor in 2012, is coming to
Washington with more general goals for the summit, said Bonnie
Glaser of the Center for Strategic and International Studies.

“The Chinese are looking mostly for symbols, optics, face,”
she said.

SEEKING HELP WITH NORTH KOREA

On North Korea, Washington has held out the prospect of
resuming long-dormant six-party talks involving the two Koreas,
the United States, China, Japan and Russia to curb Pyongyang’s
nuclear arms programs if Pyongyang ceases attacks that killed
50 South Koreans in 2010 and commits to denuclearization.

“It is vital that China join with us in sending North Korea
an unequivocal signal that its recent provocations — including
the announced uranium enrichment program — are unacceptable
and in violation of Security Council resolutions,” said
Clinton, urging Beijing to uphold U.N. sanctions on Pyongyang.

U.S. and Chinese companies will sign a number of business
deals when Hu visits Washington, the U.S. Chamber of Commerce
said on Friday. [ID:nN14191477]

Myron Brilliant, a chamber senior vice president, said he
was also hopeful Hu’s visit would flesh out recent commitments
to reopen its market to U.S. beef and to fight copyright piracy
by increasing the government’s use of legal software.

Obama, who won the 2009 Nobel Peace Prize, is in an awkward
position as host to the head of a state that has jailed the
2010 laureate, dissident Liu Xiaobo, say activists who have
criticized what they see as a muted U.S. approach on China.

“We reiterate our call for the release of Liu Xiaobo and
the many other political prisoners in China, including those
under house arrest and those enduring enforced disappearances,”
Clinton said in remarks that encouraged the rights community.

A White House official, noting that Obama met on Thursday
with five advocates for human rights in China, added, “The
president reaffirmed the American commitment to the promotion
of human rights and democracy in our foreign policy.”

Speaking on condition of anonymity, the official added, “He
also reiterated his view that progress on protection of civil
rights, rule of law, freedom of expression and religion, and
other fundamental rights make a nation stronger and more
resilient.”

Clinton urged people in both countries to put aside
zero-sum thinking about great power rivalries.

“A thriving America is good for China and a thriving China
is good for America,” she said.
(Additional reporting by Doug Palmer, Ross Colvin, John
Whitesides, Alister Bull and David Alexander; Editing by Eric
Beech and Paul Simao)